28 February 2013: High Grade Gold Mineralisation Encountered in Two Drill Lines

The Company received the final assay results for its nine hole diamond drilling campaign completed in late 2012 along two north-south trending drill traverses which targeted the central part of the 15km long gold-in-soil anomaly. Best results include: 2m @ 5.3 g/t (including 1m @ 9.5 g/t) in the first drill line; and 2.2m @ 4 5g/t (including 1m at 9.1 g/t) in the second drill line 400 metres to the west (Figures A1, A2 and A3).

Figure A1: A summary geological map of the central part of the 15 km long Oyem gold in soil anomaly showing the results of GoldStone’s “MMI” infill soil sampling programme and the locations of nine diamond drill holes that were drilled along two drill lines 400 metres apart.

Figure A2: A cross section of the eastern drill line showing high and low grade gold intercepts within a 120 metre wide deformational zone.

Figure A3: A cross section through the second drill line, 400 metres west of the eastern drill line, showing very similar style and magnitude gold mineralisation.

In addition to the high-grade intersects the programme yielded a number of wider intersects containing low grade gold mineralisation, further confirming a bedrock gold source to the 15km long gold in soil anomaly. Notably, both drill lines also confirmed the existence of an approximately 120m wide deformational zone that controls the mineralisation and underlies the best part of the soil anomaly. The concentration of gold in this zone appears to be generally elevated with 26% of the 978 samples analysed, yielding gold concentrations above 50 ppb. Inspection of the drill core revealed the significant mineralisation to occur mainly in amphibolite rocks, and in contact zones between amphibolites and more felsic rock types. Mineralised units often contain brecciated quartz-feldspar veins and minor disseminated pyrite, and are commonly related to brittle-ductile deformational zones.

The results from this limited reconnaissance drilling programme confirmed that this 15km long shear system contains significant gold mineralisation. To date we have tested only 400m of strike length out of a total of 15km and future work focused on cross structures may still uncover the best parts of this gold trend.

GoldStone plans to undertake 3,000m of further diamond drilling to test the magnitude of gold mineralisation along strike and will focus in particular on prospective cross structures across the deformational zone where increased hydrothermal activity may have resulted in the formation of wider and higher grade gold mineralisation.